Enter your mobile number or email address below and we'll send you a link to download the free Kindle App. Then you can start reading Kindle books on your smartphone, tablet, or computer - no Kindle device required.
To get the free app, enter your email address or mobile phone number.
The Student Loan Scam: The Most Oppressive Debt in U.S. History and How We Can Fight Back Paperback – February 1, 2010
Top 20 lists in Books
View the top 20 best sellers of all time, the most reviewed books of all time and some of our editors' favorite picks. Learn more
Frequently Bought Together
Customers Who Bought This Item Also Bought
From Publishers Weekly
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved. --This text refers to an out of print or unavailable edition of this title.
Browse our Teacher Supplies store, with everything teachers need to educate students and expand their learning.
More About the Author
Top Customer Reviews
Some of the actions of our government include making student loans the only loans available that cannot be discharged through bankruptcy, allowing the loan companies and guarantee companies to own the collection agencies, which provides to them an incentive to allow (and push) the student to default, being able to attach Social Security retirement and disability income for repayment, allowing interest rates to be as high as 29.9% and a host of other goodies.
The stories in this book will cause you to cringe. The author does name names and lets you know who has been a friend to student's and their families and who has been bought by the loan companies PACs. In addition, you will learn about the various pitfalls and tricks used by the loan companies to increase the profit margin on these loans.
While the writing is a little redundant, it generally is a well written book that contains crucial information for anyone who has a student loan or for the families of anyone considering taking out a loan. Read this book and learn the pitfalls that are waiting for you!
Americans borrow almost $90 billion/year to attend college. About 2/3 of college students require loans to make it through, and typical undergraduate borrows leave school with over $20,000 in student loan debt, $42,000 for graduate students. Student-loan holders can garnish a borrower's wages, tax returns, Social Security, and disability incomes - without a court order. Defaulted loans do not qualify for forgiveness for eg. teaching in under-served areas.
Federal loan limits, with protections, are $8,500/year for graduate students.
Fortune magazine called Sallie Mae the second most profitable company in 2005, and its CEO topped the list of highest paid CEOs in D.C. Sallie Mae's (major student loan provider) fee income increased 228% between 2000 and 2005, while its loan portfolio rose only 82% - the difference was penalties and fees from defaulted loans. As of 2007, Sallie Mae's top two executives together made more than 500 million. Universities often have "preferred-lender" arrangements with the universities and receive kickbacks. In 1999 Sallie Mae purchased Nellie Mae, followed by USAGroup and Southwest Student Services (nonprofit student loan companies and guarantors).
The national average interest rate is 12% for private student loans. Student loans are the only type of loan in U.S. history to be non-dischargeable in bankruptcy.Read more ›
If you slip (and it doesn't take much to slip), you could end up little more than an indentured servant, owing 2x or 4x or more what you originally borrowed. Your wages, tax refunds, social security payments, even disability payments will be garnished from now until the end of time. Chances are slim you'll ever be able to pay it off, because the allowable fees and penalties on a student loan are impossibly huge. At the whim of the student loan companies, you can have your professional license yanked or be forced out of public employment. Did I mention debt collectors don't need to follow fair collection practices because it's a student loan? Oh and forget about discharging it through bankruptcy... it's a student loan... not allowed.
Every page of this book reveals jaw-dropping, horrifying facts of how the student loan industry put Congress in their pocket and began a massive wealth transfer (from student loan borrower to them) that has resulted in some student loan executives earning 500 million dollar salaries. The saddest part of this is not only the individuals who suffer due to this; it's all of society because we need a well-educated workforce to prosper, and the student loan industry is making that more and more impossible.
I highly recommend this book and think it would be a very good choice for a discussion group.
Chapter 1 - "The Rise of Sallie Mae and the Fall of Consumer Protections" -How Sallie Mae became a vertical corporation with control of all aspects of student loans: issuing loans, guarantees, and collections. In 2002 it purchased Pioneer Credit Recovery, a student loan collection company. It lobbied Congress for laws that permitted huge penalties and fees for defaulted debt.
Chapter 2 - "Who Benefited" - The huge salaries of Albert Lord, CEO of Sallie Mae, and other executives in the industry. Reveals that Edfund, a "guarantor"--is just another entity that relentlessly extracts money from debtors.
Chapter 3 - "Collection Abuses" and Chapter 4 "The Borrowers" - Readers may have already heard some of these stories from[...]. One particularly sad story is a graduate of Illinois State University who committed suicide after completing his master's in chemistry because his student loans had grown to $100,000. Many student debtors report being called several times every day by Sallie Mae loan shark collectors.Read more ›
Most Recent Customer Reviews
There's a lot of information condensed in this very readable little tome. I am hoping for a new, updated edition with current numbers and trends.Published 1 month ago by Bobby R. Blue
well-written and rather enlightening book. I read almost the whole thing. Definitely motivated me to handle my loans carefully.Published 3 months ago by B. Tanner
what a scam! every parent need to read this book!! It should be mandatory reading for high school students!!Published 4 months ago by Sherlock Holmes
Great service, fast shipping and book was exactly as described. What a great book as well!Published 5 months ago by Rae Lynn Hilliard
The should be required reading for high school graduate before signing thier first student loan
Congress and their political cronyism have taken away our children student loan... Read more
It's an extremely lean and concise book that touches on all major points regarding the student loan issue: the history of the issue, what's currently going on (which special... Read morePublished 12 months ago by Todd30
I graduated with a 4 year degree. It took me 9 years to get through 4 years of University. One class at a time. I worked full time and raised 2 babies. Read morePublished 12 months ago by R. L. Underhill
This is a great books that tells you about hidden traps of taking student loan. Please do read this book before you take out loan for your degrees.Published 15 months ago by Varun
This book identifies some of the biggest crooks and scam artists in our US government. They should be in jail.Published 16 months ago by sun ben hott